Tax Appeals

Appealing tax decisions is a critically important legal process for businesses and individuals who disagree with taxes, fines, or other administrative acts imposed by tax authorities. The tax system in Georgia provides for a two-stage dispute resolution system: administrative and judicial. Administrative appeal is often the fastest and most effective way to correct errors made by the tax authority before the case reaches court. This service includes qualified legal assistance in preparing complaints, collecting evidence, and representation before the Dispute Resolution Council.

Appealing a tax audit act or a tax offense protocol requires not only deep knowledge of the Tax Code but also strict adherence to procedural norms. In many cases, taxpayers make mistakes regarding deadlines or substantiation, which leads to the complaint being left unconsidered or rejected. The involvement of a professional tax lawyer ensures that your arguments are legally sound and the legality of the tax authority's actions is properly evaluated.

What the Tax Appeals Service Covers

The tax appeals service is complex and involves managing the full cycle of the dispute at the administrative level. Specialists ensure:

• Analysis of the tax audit act: Checking the validity of the accrual, identifying factual and legal inaccuracies.
• Preparation of the complaint: Drafting a reasoned complaint for submission to the Revenue Service of the Ministry of Finance of Georgia or the Dispute Resolution Council.
• Evidence gathering: Preparing documentation, expert opinions, and explanations necessary to refute the audit conclusion.
• Representation at the Dispute Council: Protecting the client's interests during the oral hearing, which is critical for correctly positioning arguments.
• Deadline control: Adhering to the statutory 30-day appeal period and avoiding procedural errors.
• Analysis of administrative appeal results: Determining further strategy – whether to conclude the dispute or proceed to court.

Common Situations When You Need This Service

Tax appeals become necessary in various real-world scenarios:

• Incorrect accrual following an audit: A tax audit incorrectly classified an economic transaction, resulting in a large amount of tax and penalties being accrued.
• Cancellation of VAT credit: The Revenue Service cancelled a VAT credit based on suspicion of a fictitious transaction, although the transaction was real.
• Asset seizure and collection orders: Due to tax arrears, a collection order (inkaso) was placed on company accounts, halting business operations and requiring immediate appeal to suspend enforcement.
• Revocation of status: Cancellation of Small Business or Special Trading Zone status, leading to the loss of tax benefits and retrospective accruals.
• Refusal to refund overpaid amounts: The tax authority refused to refund or offset overpaid taxes.

Georgian Legislation and Regulations

The tax appeal process is regulated by Georgian legislation, specifically:

• Tax Code of Georgia: Defines the rules for appeals, deadlines, and the bodies reviewing tax disputes.
• General Administrative Code of Georgia: Establishes general principles of administrative proceedings, standards for examining evidence, and decision-making.
• Government of Georgia Decree on the Dispute Resolution Council: Regulates procedural details of dispute resolution within the Ministry of Finance system.

According to legislation, payment of the disputed amount is suspended during the tax dispute period if the taxpayer submits a complaint within the statutory deadline, allowing the business to continue operating until a final decision is reached.

Step-by-Step Service Process

Working with a Legal.ge specialist during the appeal process involves the following stages:

1. Initial consultation and document review: The lawyer reviews the tax audit act and assesses the prospects of an appeal.
2. Strategy development: The defense line, necessary evidence, and arguments are determined.
3. Preparation and submission of the complaint: Drafting a legally sound complaint and registering it with the relevant body (Revenue Service or Ministry of Finance).
4. Oral hearing: Participation in the Dispute Resolution Council session, where the lawyer defends the client's position.
5. Decision making and next steps: Analysis of the Council's decision and planning to continue the dispute in court if necessary.

Why Choose Legal.ge

Tax disputes require narrow specialization and practical experience. Legal.ge gives you access to leading tax lawyers operating in Georgia who have years of experience in successfully concluding disputes. Through our platform, you will find specialists who know the system from the inside and can protect your business from unfounded tax liabilities. Trust professionals and defend your rights effectively with Legal.ge.